ICE Futures U.S., Inc.
November 6, 2024
Maryland Compliance Renewable Energy Credit Tier 1 Future - Advisory Regarding the Eligibility of Black Liquor Renewable Energy Credits
On Tuesday, November 5, 2024, the Exchange received a letter from the Public Service Commission of Maryland ("PSC") which confirms that any black liquor renewable energy credits ("RECs") bought and sold pursuant to a pre-June 1, 2021 commercial contract ("Qualifying BL RECs") remain eligible for retirement as Tier 1 RECs under Maryland's renewable portfolio standard ("RPS").1 In addition, the PSC also confirmed that such Qualifying BL RECs may be resold and retired as Tier 1 RPS RECs by subsequent purchasers (firms that were not a party to the pre-June 1, 2021 contract). Accordingly, Qualifying BL RECs remain deliverable against the Exchange's Maryland Compliance Renewable Energy Credit Tier 1 futures contract ("Futures Contract"), subject to the conditions set for the below.
Based on the information received from the PSC, a deliverer of Qualifying BL RECs must submit to the receiver at the time of delivery: (i) an unredacted copy of the pre-June 1, 2021 commercial contact under which such Qualifying BL RECs were bought and sold; and (ii) an attestation, in the form determined by the Exchange, that the Qualifying BL RECs being delivered against the Futures Contract were bought and sold under the accompanying pre-June 1, 2021 commercial contract and are eligible for retirement as Tier 1 RPS RECs.2 Both the deliverer and the deliverer's Clearing Member will be required to sign the attestation.
In connection with the foregoing, the Exchange will list a non-Black Liquor Maryland Compliance Renewable Energy Credit Tier 1 Future on December 9, 2024. No black liquor RECs, qualifying or otherwise, will be deliverable against the contract. Additional information on the new contract can be found here.
For information about the delivery requirements for black liquor RECs
Jason Fusco Jason.Fusco@ice.com 212-748-4021
For more information about the new contract:
Michael Kierstead Mike.Kiertead@ice.com 403-974-4339
- On May 30, 2021, Maryland Senate Bill 65(2021), which excluded black liquor from list of qualifying renewable resources, was passed into law. The Senate Bill contained a provision stating that "existing obligations or contract rights may not be impaired by any way by this Act." This left open the question of whether black liquor RECs bought and sold under contracts entered into prior to June 1, 2021, but which called for delivery in the years following 2021 (e.g. 2022, 2023, 2024) were eligible for delivery and whether such contracts could be resold by the parties to the pre-June 1, 2021 contract and subsequently retired by compliance entities that were not a party to the pre-June 1, 2021 contract.
- Subject to regulatory review.
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ICE - Intercontinental Exchange Inc. published this content on November 06, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 06, 2024 at 22:29:24.391.